A Glance at the 2024 Federal Budget

Tonight, the Federal Government has handed down a budget with a range of measures that has some positive implications for the automotive industry. The intent of these measures is positive, however, more detail is needed to understand whether they will meet the specific needs of our industry.
It's pleasing to see that the Government has recognised and acted upon several of our recommendations in our pre-budget submission. 

Here's what we learned tonight, at a glance.

The Good

New Energy Apprentice Scheme
The Federal Government has made amendments to the New Energy Apprenticeship Scheme. The new scheme will offer up to $10,000 to support automotive apprentices who undertake training with some exposure to EVs.  The new scheme amends the old scheme which required at least 90% training on EVs and reduces that requirement.

Investment in Charging Infrastructure
$60.0 million over four years from 2024–25 for the installation of electric vehicle charging infrastructure at automotive businesses to support the transition to selling and servicing electric vehicles.

Additional Funding for Automotive Training

$91 million over five years from 2023–24 (and an additional $0.6 million over three years from 2028–29) to support the development of the clean energy workforce, including addressing vocational education and training sector trainer workforce shortages, and funding new and existing training facility upgrades across a range of clean energy occupations.

Maintaining Training Standards
The investment in ASQA, the training regulator, is an important step in dealing with substandard training organisations inadequately preparing apprentices for the future.

Extension of the Instant Asset Write Off Scheme 

The scheme, which allows small businesses to write off equipment up to $20 000, was due to be scrapped at the end of this year, however, the Government has announced it will continue this scheme for another 12 months.

Women in Automotive
The investment of $55.6m over 4 years to attract women to male-dominated industries is welcomed and will be actively perused by MTA NSW in an effort to close the skills shortage.

Where We Need More Clarity

Employer Apprentice Subsidies
The Australian Apprenticeships Incentive System, financial support to apprentices, trainees and their employers was scheduled to reduce from 1 July 2024, including for those in priority occupations, through the implementation of Phase Two settings. The measure will increase Phase Two Incentive System payments for apprentices in priority occupations from $3,000 to $5,000 and hiring incentives for priority occupation employers from $4,000 to $5,000 for 12 months from 1 July 2024. This scheme is currently under review.

The National Vehicle Efficiency Standard
The investment in the National Vehicle Efficiency Standard of $84.5m over 5 years, along with $10m to raise awareness, is a positive step, however, there is little detail on how this funding will be allocated.

Capital and Equipment Investment

MTA NSW welcomes the $50 million capital and equipment investment fund for facility upgrades to expand clean energy training capacity. However, the Government must expand the scope beyond GTO's to include RTO's so the industry can take meaningful advantage of the investment.

Reduced Permanent Migration
The changes to Permanent Migration Program Adjustments may have an adverse impact on Australia's ability to attract skilled migrants to join the automotive workforce, however, the impact in NSW will be minimal due to licensing regulations in our state. 

What We Didn't Like

The Luxury Car Tax Remain
This continues to be a disincentive for high end EV uptake and is effectively a tax upon a tax.

Nothing on Road User Charges
The Government has indicated they will not review Road User charges for at least 12 months. 

While this budget is a big step in the right direction, there is more work to be done to prepare Australia for an EV future and realise its net zero objectives.
The investment in VET, both in the workforce and infrastructure, is positive but there is no guarantee that our industry will reap the benefits. Our team will be working from now and through to the State budget to ensure the funding allocations are realised and in the best interest of our members, and the automotive industry at large. 

As more detail comes to light over the coming days we will keep you updated with any critical information. 

< Back

Spirit Super Capricorn Society Commonwealth Bank Heart180 Officeworks Alemlube

Get in touch with us today! Call us on 02 9016 9000